Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed rule
will increase licensing fees for hospitals. In 2011, the
Washington state legislature adopted the 2011-2013 operating
budget (2ESHB 1087, chapter 50, Laws of 2011 1st sp. sess.),
giving the department authority to raise licensing fees. The
fee increase is necessary to defray the costs of the hospital
inspection program. The expenses in 2011-2013 biennium will
exceed the projected revenue without the fee increase. State
law (RCW 43.70.250) requires that business licensing programs
be fully self supporting and directs the department to raise
fees as necessary to meet the actual costs of operating the
acute care hospital program.

Reasons Supporting Proposal: RCW 43.70.250 requires the
cost of each licensing program be fully borne by the members
of that business. The department is required to periodically
adjust fees at a sufficient level to defray the costs of
administering its programs. Expenses in the 2011-2013
biennium, including travel, rent and utilities will exceed the
projected revenue. These fees are critical to ensuring the
safety of patients accessing hospital care services.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic
impact statement (SBEIS) was not prepared. Under RCW 19.85.025 and 34.05.310 (4)(f), an SBEIS is not required for
proposed rules that set or adjust fees or rates pursuant to
legislative standards.

A cost-benefit analysis is not required under RCW 34.05.328. The agency did not complete a cost-benefit
analysis under RCW 34.05.328. RCW 34.05.328 (5)(b)(vi)
exempts rules that set or adjust fees or rates pursuant to
legislative standards.